What Most Families Miss | The Financial Details That Protect
Your Inheritance | | Tax Advantage Stepped-Up Cost Basis When you inherit a home, the IRS resets the cost basis to the fair market value at the date of death - not what the original owner paid. If your parents bought in Dix Hills for $80,000 in 1985 and it is worth $750,000 at death, your basis is $750,000. Sell at $760,000 and your capital gains exposure is only $10,000, not $670,000. This saves families tens of thousands in taxes. | | | Watch Out NY Estate Tax Cliff New York's estate tax exemption is approximately $6.94 million - but there is a cliff. If the total estate exceeds 105% of the exemption (roughly $7.3 million), the entire exemption disappears and tax applies to the full estate value. For Long Island families with a high-value home plus retirement accounts and life insurance, this cliff can create unexpected exposure. Your estate attorney and CPA should evaluate this early. | | | | Strategy As-Is vs. Light Renovation Estate homes are often sold as-is, but that does not mean you should skip all preparation. Fresh paint, deep cleaning, basic landscaping, and light staging can increase the sale price by 5-10% with minimal cost. Major renovations rarely make financial sense for estate sales. I run the numbers on every potential improvement to show you exactly what will - and will not - pay for itself. | | | Family Dynamics Multiple Heirs & Disagreements When siblings inherit a parent's home, disagreements about pricing, timing, and strategy are common. One wants to sell fast, another wants to renovate, a third wants to keep it. The executor has legal authority, but documented agreement among all beneficiaries prevents disputes later. I present the financial analysis to every stakeholder so decisions are made on data, not emotion. | | | |
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